Trading Symbol: TSX-V: ARTG
All figures presented in Canadian Dollars,
unless specified otherwise
VANCOUVER, BC, May 2, 2022
/CNW/ - Artemis Gold Inc. – May 2,
2022 (TSXV: ARTG) ("Artemis" or the "Company")
is pleased to announce that, as planned, it has made an award for
the EPC scope of works for the engineering, procurement,
construction and commissioning of the processing plant and
associated infrastructure at the Company's Blackwater project
("Blackwater" or the "Project") to Sedgman Canada
Limited ("Sedgman"), a CIMIC Group Company.
The award amount of approximately $312
million is consistent with the prescribed budget for the
process plant and selected infrastructure scope of works in the
2021 Feasibility Study technical report entitled "Blackwater
Gold Project NI 43-101 Technical Report on Updated Feasibility
Study" dated September 10, 2021
("FS").
The EPC contract is expected to be executed by June 30, 2022. The EPC contract will be supported
by performance security including bank letters of credit which will
underwrite the financial performance and obligations of the
contractor under the contract.
While the parties finalize the definitive EPC contract, in order
to maintain the project schedule, an interim services agreement has
been agreed, the scope of which includes but is not limited to, the
following activities:
- Derisking by way of:
-
- Procurement and pricing of long lead equipment;
- Potential advance procurement of certain raw materials for
fabricators;
- Detailed engineering work commencing in Q2 2022; and
- Progression of quantification of structural steel/platework and
piping areas of the estimate.
- Optimization through refined scope changes.
The project schedule supporting the award to Sedgman includes
the following assumptions:
- Construction mobilization and major works preparations commence
in Fall 2022 with process plant bulk earthworks scheduled to be
completed prior to the start of major works;
- Commissioning activities of the process facility to commence in
Q1 2024;
- First gold pour expected in H1 2024.
The above dates are consistent with the dates stated in the
Company's press release dated March 30,
2022.
The final EPC contract terms will provide for potential cost
adjustments of certain components of construction representing
approximately less than 15% of the total contract amount, including
the potential for cost adjustments from further quantity
definition. Standard adjustments, including, currency
exchange rates for certain equipment purchases also apply, and
further optimization of the processing plant with final engineering
will occur.
Artemis is also considering awarding additional construction
packages under an EPC agreement type structure to further enhance
the risk management of the total capital expenditure for
Blackwater.
When combined with the EPC for the Power Transmission Line
announced on August 18, 2021, the
percentage of the estimated total capex for Blackwater under EPC is
on track to target ~60% of the initial Stage 1 development capital
in a lump sum EPC type arrangement by Q3 2022.
Sedgman Canada Limited is a wholly owned subsidiary company of
Sedgman Pty Limited, a CIMIC Group company. CIMIC Group (ASX:CIM)
is an engineering-led construction, mining, services and public
private partnerships leader working across the lifecycle of assets,
infrastructure and resources projects. CIMIC's mission is to
generate sustainable shareholder returns by delivering innovative
and competitive solutions for clients and safe, fulfilling careers
for its people. With a history since 1899, and around 29,000 people
in around 20 countries, CIMIC strives to be known for principles of
Integrity, Accountability, Innovation and Delivery, underpinned by
Safety. CIMIC is a member of the Dow Jones Sustainability Australia
Index and FTSE4Good.
Steven Dean, Chairman and CEO
commented, "The award of the EPC job for the process plant at
Blackwater is another significant milestone for Artemis, reflecting
a competitive process involving multiple bidders. We are very
pleased to be working with a world class engineering firm in
Sedgman. In partnership, we will work to finalize the design and
engineering of the Blackwater project in advance of a start of
major development activities. Blackwater remains on track for a
start of major construction activities following receipt of Mines
Act and other permits in Fall 2022 with a first gold pour in H1
2024".
Further updates will be provided in due course.
Qualified Person
Jeremy Langford, FAUSIMM, a
Qualified Person as defined by National Instrument 43-101, has
reviewed and approved the scientific and technical information in
this news release.
On behalf of the Board of Directors,
ARTEMIS GOLD INC.
On behalf of the Board of Directors
"Steven Dean"
Chairman and Chief Executive Officer
Neither the TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in the policies of the TSX
Venture Exchange) accepts responsibility for the adequacy or
accuracy of this release.
Cautionary Note Regarding
Forward-Looking Information
This news release contains certain "forward looking
statements" and certain "forward-looking information" as defined
under applicable Canadian and U.S. securities laws (together,
"forward-looking statements"). Forward-looking
statements can generally be identified by the use of
forward-looking terminology such as "may", "will", "expect",
"intend", "estimate", "anticipate", "believe", "continue", "plans",
"potential", "target" or similar terminology. Forward-looking
statements in this news release include, but are not limited to,
statements and information related to the plans of the Company
regarding the Project and other statements regarding future plans,
expectations, guidance, projections, objectives, estimates and
forecasts, as well as statements as to management's expectations
with respect to such matters.
Forward-looking statements and information are not historical
facts and are made as of the date of this news release. These
forward-looking statements involve numerous risks and uncertainties
and actual results may vary. Important factors that may cause
actual results to vary include without limitation, risks related
to the ability of the Company to accomplish its plans and
objectives with respect to the Project within the expected timing
or at all; the timing of the finalization of definitive documents
related to the PLF and the satisfaction of other conditions
precedent; the timing and receipt of certain approvals, changes in
commodity and power prices, changes in interest and currency
exchange rates, risks inherent in exploration estimates and
results, timing and success, inaccurate geological and
metallurgical assumptions (including with respect to the size,
grade and recoverability of mineral reserves and resources),
changes in development or mining plans due to changes in
logistical, technical or other factors, unanticipated operational
difficulties (including failure of plant, equipment or processes to
operate in accordance with specifications, cost escalation,
unavailability of materials, equipment and third party contractors,
delays in the receipt of government approvals, industrial
disturbances or other job action, and unanticipated events related
to health, safety and environmental matters), political risk,
social unrest, and changes in general economic conditions or
conditions in the financial markets. In making the forward-looking
statements in this news release, the Company has applied several
material assumptions, including without limitation, the assumptions
that: (1) market fundamentals will result in sustained mineral
demand and prices; (2) the receipt of any necessary approvals and
consents in connection with the development of any properties; (3)
the availability of financing on suitable terms for the
development, construction and continued operation of any mineral
properties; and (4) sustained commodity prices such that any
properties put into operation remain economically viable. The
actual results or performance by the Company could differ
materially from those expressed in, or implied by, any
forward-looking statements relating to those matters. Accordingly,
no assurances can be given that any of the events anticipated by
the forward-looking statements will transpire or occur, or if any
of them do so, what impact they will have on the results of
operations or financial condition of the Company. Except as
required by law, the Company is under no obligation, and expressly
disclaims any obligation, to update, alter or otherwise revise any
forward-looking statement, whether written or oral, that may be
made from time to time, whether as a result of new information,
future events or otherwise, except as may be required under
applicable securities laws.
SOURCE Artemis Gold Inc.